Scheme for 4,1 billion hryvnias: Bolokhovets and Smal suspected of manipulating the investment program of SE “Forests of Ukraine”

Scheme for 4,1 billion hryvnias: Bolokhovets and Smal suspected of manipulating the investment program of SE “Forests of Ukraine”

The investment program announced by the management of SE “Forests of Ukraine” for 4,1 billion hryvnias did not correspond to the company’s actual financial condition and could have been used to establish control over state funds.

Law enforcement officers uncovered the criminal scheme conceived and attempted by former general director of SE “Forests of Ukraine” Yurii Bolokhovets together with his accomplice — the suspended head of the State Forestry Agency Viktor Smal.

According to the deputy head of the NGO “Open Forest,” Danylo Malandii, Bolokhovets presented the company’s investment program as “transparent, open, and predictable procurement.” It envisaged expenditures of 4,1 billion hryvnias in 2026 and 4,3 billion hryvnias in 2027.

However, the company’s financial condition did not allow for the implementation of such plans. Even before the program’s presentation, its financial justification was to be checked by the State Forestry Agency as the asset management body and by the company’s supervisory board, since according to the statutory documents it is the supervisory board that approves investment programs of SE “Forests of Ukraine.”

Malandii explained that after paying taxes, dividends to the state, and other mandatory payments, the company had about one billion hryvnias of undistributed profit. In the expert’s view, the inflated figures could have been used to create long-term control over the company’s procurements and financial flows.

What is officially known: the key emphasis is support for the national producer. 2,1 billion hryvnias are planned to be directed to the purchase of goods and services that can be supplied by Ukrainian companies.

As emphasized by the Deputy Minister of Economy, Environment and Agriculture of Ukraine Taras Vysotskyi, the company’s investment plans fully align with the state course for the development of domestic production.

“The investment program of SE ‘Forests of Ukraine’ demonstrates how state companies can work to develop Ukrainian manufacturing.

One of the program’s first directions will be the purchase of firefighting equipment for 380 million hryvnias. Up to 95% of this amount may remain in the Ukrainian economy, since the country produces almost the full range of necessary equipment — from fire trucks and modules to protective clothing and tools for creating mineralized strips.

Bolokhovets stressed that 80 million hryvnias are planned for forest regeneration in 2026, and most of the machinery and tools for these works can also be supplied by Ukrainian companies. At the same time, modern logging machinery that is not currently manufactured in Ukraine will be purchased directly from European manufacturers. Meanwhile, trailers, semi-trailers, and lowboy trailers for transporting that equipment, totaling more than 100 million hryvnias, are planned to be ordered from domestic enterprises.

More than 621 million hryvnias are allocated for the construction of forest roads. The works will be carried out by the company’s own forces or with the involvement of Ukrainian contractors and materials of Ukrainian production, which should reduce logistics costs and support regional economies.

Another 270 million hryvnias are planned to be invested in creating a network of modern forest seed centers. About 90% of these funds will go to goods and services from Ukrainian companies, which will allow forest restoration with high-quality planting material in accordance with international standards.”